Definition : Cost-plus contract

Contract by which a contractor or service provider undertakes to provide a service for  remuneration equal to the costs paid for labour, subcontracted services, materials and other direct expenses, plus an amount to cover the time spent by the contractor or service provider for the management and coordination of all aspects of the project.  This type of contract usually has a financial limit defined in the terms and conditions.

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To maintain the common portions of the co-ownership and ensure the preservation of the immovable, it is necessary for the syndicate to subscribe to a certain number of maintenance or construction contracts. As the representative of the syndicate of co-owners, it is the board of directors that generally has the power to subscribe to all the contracts of the co-ownership. To manage costs and determine the obligations of each, it is essential for directors to distinguish the main types of contracts. This fact sheet provides an update on the most common contracts in this area, namely the lump sum contract, the cost-plus contract and the flat-rate unit price contract.
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